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AL Excise

AL Excise - User guide

How to set up and use the app in Business Central.

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1. Concepts in one minute

  • Two kinds of liters. The hydrated liters are the liters of product as it is. The anhydrous liters are the liters of pure alcohol: hydrated liters multiplied by the alcoholic strength. A bottle of 0.7 liters at 40% vol is 0.7 hydrated liters and 0.28 anhydrous liters.
  • The calculation base. Ethyl alcohol (spirits, liqueurs) pays excise per anhydrous liter. Intermediate products, such as vermouth, pay per hydrated liter, because the law taxes them on the volume of the finished product. Each rate states its own base.
  • Dated rates. A rate has a starting date; a document uses the latest rate that starts on or before its posting date.
  • Excise is an item charge. On every sales document the app adds up liters and amounts, creates an item charge line and assigns it to the item lines. The excise then follows standard Business Central costing and posting. State tax stickers work the same way, with their own charge and their own general ledger account.
  • Duty suspension. Goods sent to a tax warehouse, an authorized warehousekeeper or a registered consignee, or leaving the European Union, move under duty suspension: no excise is charged, and the excise numbers of the consignee are carried on the document.
  • Refundable excise. A customer entitled to a refund gets it as a negative charge on the document, up to the credit still available.

2. Prerequisites

  • Microsoft Dynamics 365 Business Central, version 28.0 or higher, online (SaaS) and on-premises. The app is not published on AppSource: it is distributed and installed directly by AppLibra.
  • Localization: Italy.
  • The dependencies installed: AL Foundation App, AL License and Trial Management, AL Role Center, AL Message Passing, AL Message Passing IT, AL Catch Weight Management and AL Kit. It also works with AL Free Gift, for excise and tax stickers on gift lines.
  • Permissions: two roles. ALPEXC-USER for whoever enters and posts documents with excise: it maintains excise numbers and customs agents and reads the setup. ALPEXC-ADMIN for whoever configures the app: it includes the first one and adds the setup pages, the rates, the refunds granted to customers and the deletions. Whoever had the former set AL EXCISE finds ALPEXC-ADMIN assigned after the upgrade. If the former set was given automatically to new users by license type, that configuration has to be made again by hand.

3. Setup

3.1 Activate the license

Open Excise Setup (EXC). Saving the setup for the first time starts the trial period; the Add License action installs the license you received from AppLibra.

3.2 Excise Setup (EXC)

  • Excise Origin Country Code: the country where the excise is due. Only customers of this country are charged excise.
  • Excise Tax G/L Account No. and Tax Sticker G/L Account No.: the accounts the excise and the tax stickers are posted to.
  • Default Excise Tax Setup No. and Default Tax Sticker Setup No.: the charge setups proposed on new items. The calculation does not start until both are filled in.

3.3 Charge setups and rates

  • Excise Charge Setup (EXC): one code for each kind of product that has its own rate, for example one for spirits and one for intermediate products. Each code names the item charge the excise is posted with.
  • Excise Rates (EXC): for each charge setup, the Starting Date, the Excise Tax Unit Cost for one liter and the Calculation Base: Anhydrous Liters or Hydrated Liters. A new rate proposes the base of the latest rate of the same setup. Rates entered before the base existed apply to anhydrous liters.
  • Tax Sticker Charge Setup (EXC): the charge setup of the state tax stickers.
  • Free Gift Excise Charge Setup (EXC) and Free Gift Tax Sticker Charge Setup (EXC): the charge setups that reverse excise and stickers on gift lines.
  • Refundable Excise Charge Setup (EXC): the charge setup the refundable excise is posted with.

3.4 The item

On the Item Card:

  • Alcohol %: the alcoholic strength by volume.
  • Capacity: for bottled items, the liters contained in one base unit. When it is filled in, the liters come from here.
  • K and Calculate K: for products sold in bulk, K converts the net weight into hydrated liters. With Calculate K on, K is read from the Alcohol Conversion Table (EXC) by alcoholic strength.
  • Excise Setup No. and Tax Sticker Setup No.: the charge setups of the item.
  • Force Excise Tax Calculation: the excise is calculated on this item even when the customer is under duty suspension.

The units of measure for anhydrous and hydrated liters are created when the app is installed.

3.5 Customers, excise numbers and customs agents

  • On the Customer Card: Excise Duty Suspension, and the excise numbers of the customer as tax warehouse, authorized warehousekeeper or registered consignee.
  • Excise Numbers (EXC): the excise numbers of customers and customs agents, by type, with the address the accompanying document reports. A number can be exempt from tax stickers.
  • Customs Agents (EXC): the customs agents that receive goods under duty suspension on behalf of customers, with their own excise numbers and the customs office of exit.
  • Customer Refundable Excise (EXC): the excise a customer is entitled to have refunded, from which date, and how much of it has already been used.

4. Daily use

4.1 A sales line with excise

Enter the item and the quantity. The line shows the alcoholic strength, the hydrated and the anhydrous liters, the Excise Tax Amount and the excise for one unit. The amount is the rate in force at the posting date multiplied by the liters of its calculation base.

4.2 The excise charge on the document

When the excise of the document is calculated, the app adds one item charge line for each charge setup used: the quantity is the total of the liters of the calculation base, the amount is the total excise, and the charge is assigned to the item lines it comes from. Tax stickers get their own charge line, in pieces. Document Excise Totals on the sales order shows the same totals by charge setup.

The unit price of the charge line is the total amount divided by the total quantity. It can differ from the rate in the last decimals; the amount is the one that counts.

4.3 Customers under duty suspension

For a customer under duty suspension the excise is not charged. The document carries who the excise numbers belong to, the customer or a customs agent, the excise numbers themselves, the customs office of exit for exports, and the type and number of the accompanying document (e-AD, DAS, DAA). Releasing the document checks that the data the suspension requires is there.

4.4 Refundable excise and gifts

If the customer has refundable excise still open, the document gets a negative charge up to the credit available. On gift lines excise and stickers are charged and reversed with the gift charge setups, so that the document does not bill them.

4.5 Posting, electronic invoice and inventory

On posting, the excise follows the item charge. The Italian electronic invoice reports excise and tax sticker per unit on the line. The item ledger entries and the warehouse entries carry hydrated and anhydrous liters; Bin Contents shows, for each bin, the largest lot, the average alcoholic strength and the liters.

Recalculate Liters on Entries (EXC) rewrites the liters on posted entries for a range of dates. It corrects history, so it is reserved to the administrator.

5. Where to find it

  • Tell Me: search "EXC" (every page of the app is tagged), or the page by name, for example "Excise Rates (EXC)".
  • On documents: the excise fields on sales order lines and headers, and Document Excise Totals on the sales order.
  • Item Card, Customer Card, Location Card: the excise fields of each.
  • Role centers: an Excise (EXC) group with excise numbers, customs agents and customer refundable excise on the sales order processor role center. The setup pages are on the AppLibra hub.
  • AppLibra hub: Shift+F12, Explore other roles, AppLibra.
  • Manual Setup: the setup page is registered in the Manual Setup list.

6. Tips and troubleshooting

  • "Default Excise Tax Setup No. must have a value". The calculation needs both default charge setups in Excise Setup (EXC). Fill them in.
  • No excise on the line. Check that the customer is in the excise origin country and not under duty suspension, that the item has an excise setup and an alcoholic strength, and that a rate starts on or before the posting date.
  • The excise of an intermediate product is too low. Its rate is probably on anhydrous liters. Set the Calculation Base of the rate to Hydrated Liters.
  • The liters are zero. A bottled item needs the Capacity; a bulk item needs K, or Calculate K with the alcohol conversion table filled in, and a net weight.
  • A user gets a permission error on the setup. The role centers show the setup action to everyone; the setup pages need ALPEXC-ADMIN.
  • What the app does not do. Beer, wine, mineral oils and energy products are not handled. There is no tax warehouse register and no electronic submission of the accompanying documents. Credit memos and return orders do not carry the duty suspension data.

7. Support and resources